After variously describing it as a hobby and pointing out that sales have been strong, Apple appears to have begun restructuring its Apple TV line. On Sunday, it dropped the 40 GB model from its lineup and cut the price of the 160 GB model by $100, to $229. Could Cupertino be giving up on the device, or is it laying the groundwork to take it to the next level?

Cupertino Shuffles Apple TV Lineup